Bloomberg reports that T-Mobile (Deutsche Telekom) can block iPhone buyers from using the handset on competitors' networks, a German court ruled, overturning an injunction won by Vodafone Group.

"From the beginning we were very convinced that this was an offer that's absolutely fine from the legal side and a really good offer for the customer," said T-Mobile spokesman Klaus Czerwinski.

The Regional Court of Hamburg said in a statement today that it lifted an injunction obtained by Vodafone that stopped T-Mobile unit from selling the device only with a two-year exclusive contract or with software that only works with its network.

T-Mobile has said that it will scrap an unrestricted €999 iPhone offer ($1,477) that it introduced to comply with the initial court order. From now, the iPhone will only be available in Germany for €399 with a binding contract.